Real Estate, Chapter 2, Section 3 (Leasehold Estates), Pop Quiz Questions 3.1

Erin entered into a lease that begins on February 1 and is set to end on January 31 three years later. This leasehold is a/an: A. estate for years B. tenancy at sufferance C. periodic tenancy D. estate from year to year

A. An estate for years begins on a certain date and ends on a certain date.

Mark and Kim's two-year lease on their apartment expires. Unhappy that the couple doesn't plan to renew the lease, the property manager charges them one month's rent for failure to give notice. If the lease says nothing about this issue, in this case: A. no notice is required and no additional fee must be paid B. Mark and Kim owe one month's additional rent C. Mark and Kim owe one month's additional rent plus a nonrenewal fee D. Mark and Kim will lose the full amount of their security deposit

A. The tenants had an estate for years: a lease for a specific period of time. Unless the parties renew the lease, or unless the lease itself provides otherwise, an estate for years simply terminates at the end of the agreed period. No notice is necessary, and the tenants can't be charged a penalty for failing to give notice.

A stockbroker just leased office space downtown. What interest does the stockbroker have in the leased property? A. Leased fee estate B. Leasehold estate C. Homestead estate D. Defeasible fee estate

B. A tenant has a leasehold estate in the rented property. (The landlord has a leased fee interest.)

Martinique is renting an apartment, and she has an estate for years. This means: A. she has a freehold estate B. her lease has a definite beginning and ending date C. she can sublet the apartment for up to one year D. her lease term is at least one year

B. An estate for years has a definite beginning and ending date; it does not have to last for one or more years.

A three-year lease ends. The tenant is allowed by the landlord to stay on and to continue to pay rent, on a month-to-month basis. This would be a: A. estate for years B. periodic tenancy C. term tenancy D. tenancy at sufferance

B. If a leasehold has no fixed termination date, but instead continues from one rental period to the next until one party gives the other notice of termination, it is a periodic tenancy (periodic estate). In the situation described in the question, after the estate for years (the three-year lease) ended, the tenant's continued monthly rent payments created a month-to-month periodic tenancy.

A tenant has an automatic renewal clause in his lease. He probably has a/an: A. defeasible estate B. periodic tenancy C. estate for years D. possibility of reverter

B. Periodic tenancies generally contain automatic renewal clauses.

Raul manages a commercial property, overseeing day-to-day operations and maintenance. Raul is the agent of the building's: A. lessee B. lessor C. lessor and lessee D. vendor

B. When a property owner leases her property to someone else, the other party (the holder of the leasehold estate) is referred to as the tenant or lessee, and the owner is the landlord or lessor. A property manager represents the property owner and thus is the agent of the lessor/landlord.

Maria has a lease that begins on June 1 and ends on December 1 of that same year. Maria has a: A. periodic estate B. tenancy at will C. term tenancy D. joint tenancy

C. A term tenancy, also known as an estate for years, is a tenancy for any fixed period of time (even for less than one year).

The CEO of a large bank rented a stadium for a five-day company meeting. The rental started on August 1 and ended on August 5. This is a/an: A. periodic estate B. estate from year to year C. estate for years D. recurring tenancy

C. An estate for years both begins and ends on a definite date.

A tenancy at will: A. is created by a testator under the terms of a will B. expires on a certain date C. is created when a life tenant dies D. is created with the consent of the landlord

D. A tenancy at will depends on the consent of the property owner.

A tenancy in which the tenant is in possession with the permission of the landlord, but there is no definite rental period or duration of possession, is called a/an: A. estate in remainder B. estate for years C. periodic estate D. estate at will

D. This is the definition of an estate at will (tenancy at will). In contrast, a periodic estate is one with a repeating period, such as a month-to-month tenancy. And an estate for years is one with a fixed ending date, such as a one-year lease.